Ethereum's leading position in staking, spot cryptocurrency ETFs, and improved investor sentiment all indicate sustained upward momentum for Ethereum (ETH) prices.
Key Highlights
- Ethereum's price surge is driven by increased network activity and strong spot ETF inflows.
- Data suggests that $2,800 remains a critical resistance level for ETH.
- Layer-2 solutions contribute significantly to Ethereum's dominance in DEX trading volume.
Market Dominance and TVL Growth
Ethereum maintains its leadership in blockchain deposits and activity, especially when incorporating Layer-2 scaling solutions. Despite not reclaiming its all-time high during the 2024-2025 cycle, Ethereum's $66.6 billion Total Value Locked (TVL) far surpasses competing "Ethereum killers," which collectively hold just 14% market share compared to Ethereum's 61%.
30-Day Performance Metrics
- Ethereum Base Layer: 6% TVL growth (boosted by Pendle, Ethena, and Spark)
- BNB Chain: 6% decline
- Solana: 2% reduction
The meme coin frenzy in early 2025 proved unsustainable for competing blockchains, while Ethereum's ecosystem demonstrated stability.
Layer-2 Solutions Fuel DEX Dominance
Though high base-layer fees remain a barrier for some users, Ethereum's Layer-2 solutions recorded $70 billion in 30-day DEX volume through networks like:
- Base
- Arbitrum
- Unichain
- Polygon
Comparatively, competing networks showed significantly lower activity:
- Tron: $4.5 billion
- Avalanche: $4.2 billion
- Ethereum Ecosystem Total: $136.8 billion
Economic Sustainability Concerns
Recent network updates prioritizing rollup benefits introduced "blobs"—low-cost temporary data packages—which negatively impacted staker rewards due to reduced network fees. Ethereum recorded just $43.3 million in on-chain fees over 30 days.
Institutional Interest via Spot ETH ETFs
As the only altcoin with approved spot ETFs in the U.S., Ethereum has solidified a $10 billion market. Since May 16th, these ETFs have seen consistent net inflows totaling $837 million, reflecting growing institutional interest.
Supply Dynamics
- Exchange balances: Near all-time low (~16.33M ETH)
- Staked ETH: 28.3% of total supply
- This scarcity supports price appreciation during demand surges
Price Outlook
The 48% price spike between May 7-14 demonstrated significant holder-buyer imbalance. With strong on-chain metrics and ETF demand, breaking through $2,800 appears imminent.
👉 Discover how Ethereum's ecosystem continues to evolve
FAQ Section
What's driving Ethereum's current price increase?
Network growth, spot ETF inflows, and improved investor sentiment are key factors.
How do Layer-2 solutions impact Ethereum's dominance?
They enable high-volume, low-cost transactions that maintain Ethereum's lead in DEX activity.
When might ETH spot ETFs launch in the U.S.?
Analysts predict SEC decisions by mid-October 2025.
Why is staked ETH percentage significant?
It reduces circulating supply, creating upward price pressure when demand increases.
What are blobs in Ethereum's network?
Temporary low-cost data packages designed to benefit rollups, though they reduce staker rewards.